Earnings release for the three months ended March 31, 2026

FOR IMMEDIATE RELEASE May 8, 2026

Contact: IR Section

Business Planning and Management Dept. Grand Green Osaka South Building Park Tower, 5-54 Ofukacho, Kita-ku, Osaka 530-0011, Japan

Phone: +81-6-6648-2645

Kubota Corporation hereby reports its consolidated results for the three months ended March 31, 2026.

1. Consolidated financial results for the three months ended March 31, 2026

   1. Results of operations (Unit: millions of yen, except per share amounts)

      	Three months ended Mar. 31, 2026	Change (%)	Three months ended Mar. 31, 2025	Change (%)
      Revenue	¥ 810,012	13.7	¥ 712,556	(8.1)
      Operating profit	¥ 98,042	59.1	¥ 61,615	(40.2)
      Profit before income taxes	¥ 102,778	62.8	¥ 63,119	(40.5)
      Profit for the period	¥ 79,142	64.5	¥ 48,106	(39.2)
      Profit attributable to owners of the parent	¥ 73,285	77.2	¥ 41,346	(43.3)
      Comprehensive income (loss) for the period	¥ 91,860	-	(¥ 55,469)	-
      Earnings per share attributable to owners of the parent:
      Basic Diluted	¥ 64.45 -		¥ 35.97 -

   2. Financial position (Unit: millions of yen)

      	Mar. 31, 2026	Dec. 31, 2025
      Total assets	¥ 6,265,166	¥ 6,204,909
      Total equity	¥ 2,932,992	¥ 2,873,024
      Equity attributable to owners of the parent	¥ 2,687,235	¥ 2,622,985
      Ratio of equity attributable to owners of the parent to total assets	42.9%	42.3%

      Notes:

      1. Change (%) represents the percentage of change from the same period in the prior year.

      2. Amounts less than one million yen are rounded.

2. Cash dividends

   (Unit: yen)

   	Cash dividends per common share
   	Interim	Year-end	Total
   Year ending Dec. 31, 2026	¥ 26.00 (forecast)	¥ 26.00 (forecast)	¥ 52.00 (forecast)
   Year ended Dec. 31, 2025	¥ 25.00	¥ 25.00	¥ 50.00

   Note:

   Revisions to the forecast of cash dividends since the latest announcement: None

   Kubota Corporation and Its Subsidiaries

3. Forecasts of operations for the year ending December 31, 2026

   (Unit: millions of yen, except per share amounts)

   	Six months ending June 30, 2026	Change (%)	Year ending Dec. 31, 2026	Change (%)
   Revenue	¥ 1,600,000	10.0	¥ 3,150,000	4.3
   Operating profit	¥ 160,000	11.9	¥ 300,000	13.0
   Profit before income taxes	¥ 169,000	11.6	¥ 317,000	12.4
   Profit attributable to owners of the parent	¥ 115,000	24.4	¥ 210,000	12.5
   Earnings per share attributable to owners of the parent - basic	¥ 101.14		¥ 184.69

   Notes:

   1. Change (%) represents the percentage of change from the prior year.

   2. Revisions to the forecast of consolidated results since the latest announcement: None

4. Other information

1. Changes in significant subsidiaries during the three months ended March 31, 2026 (changes in specified subsidiaries in the changes in scope of consolidation): None

2. Changes in accounting policies and changes in accounting estimates

   1. Changes in accounting policies required by International Financial Reporting Standards (hereinafter "IFRS"): None

   2. Changes in accounting policies due to reasons other than a) above: None

   3. Changes in accounting estimates: None

3. Number of common shares issued

   :	1,138,716,846
   :	1,138,716,846
   :	1,652,579
   :	1,652,299
   :	1,137,064,336
   :	1,149,409,813

   1. Number of common shares issued, including treasury shares, as of March 31, 2026 Number of common shares issued, including treasury shares, as of December 31, 2025

   2. Number of treasury shares as of March 31, 2026 Number of treasury shares as of December 31, 2025

   3. Weighted-average number of common shares outstanding during the three months ended March 31, 2026 Weighted-average number of common shares outstanding during the three months ended March 31, 2025

Information on the status of the quarterly review by the independent auditor

Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary)

Method of obtaining supplementary materials on the financial results

Kubota Corporation plans to hold a result briefing (conference call) for institutional investors and securities analysts on May 8, 2026. The supplementary material will be published on the Company's website on the same day.

Kubota Corporation and Its Subsidiaries

1. Review of operations and financial results 4

   1. Summary of the results of operations for the three-month period 4

   2. Financial position 5

   3. Forecasts for the year ending December 31, 2026 6

2. Other information 6

   1. Changes in significant subsidiaries 6

   2. Changes in accounting policies 6

3. Condensed consolidated financial statements 7

   1. Condensed consolidated statement of financial position 7

   2. Condensed consolidated statement of profit or loss 9

   3. Condensed consolidated statement of comprehensive income 10

   4. Condensed consolidated statement of changes in equity 11

   5. Condensed consolidated statement of cash flows 12

   6. Significant matters serving as the basis for condensed consolidated financial statements preparation 12

   7. Notes to the going concern assumption 12

   8. Consolidated segment information 13

   9. Consolidated revenue by product group 14

1. Review of operations and financial results

   Effective from the beginning of the current consolidated fiscal year, the Company changed its business reporting structure based on changes in internal management reporting. Consequently, corporate expenses that were formerly included in the "Adjustment" have been included in each business segment. To reflect this change in this Earnings release, year-on-year comparisons are calculated based on the figures after the reclassification.

   1. Summary of the results of operations for the three-month period

      For the three months ended March 31, 2026, revenue of Kubota Corporation and its subsidiaries (hereinafter, the "Company") increased by ¥97.5 billion (13.7%) from the same period in the prior year to ¥810.0 billion.

      Domestic revenue increased by ¥19.7 billion (12.0%) from the same period in the prior year to ¥184.4 billion because of increased sales from Farm & Industrial Machinery, Water & Environment and Other.

      Overseas revenue increased by ¥77.8 billion (14.2%) from the same period in the prior year to ¥625.6 billion because of increased sales from Farm & Industrial Machinery and Water & Environment.

      Operating profit increased by ¥36.4 billion (59.1%) from the same period in the prior year to ¥98.0 billion mainly due to higher sales volumes and price revisions in North America for Farm & Industrial Machinery, as well as favorable exchange rate, despite some negative factors such as cost increases related to U.S. tariffs and higher expenses. Profit before income taxes increased by ¥39.7 billion (62.8%) from the same period in the prior year to ¥102.8 billion. Profit for the period increased by ¥31.0 billion (64.5%) to ¥79.1 billion, reflecting income tax expenses of ¥24.6 billion and share of profits of investments accounted for using the equity method of ¥1.0 billion. Profit attributable to owners of the parent increased by ¥31.9 billion (77.2%) from the same period in the prior year to ¥73.3 billion.

      Revenue from external customers and operating profit by each reportable segment were as follows:

      1. Farm & Industrial Machinery

         Farm & Industrial Machinery is composed of farm equipment, agricultural-related products, engines, and construction machinery.

         Revenue in this segment increased by 14.9% from the same period in the prior year to ¥700.8 billion, which accounted for 86.5% of consolidated revenue.

         Domestic revenue increased by 19.1% from the same period in the prior year to ¥90.4 billion mainly due to increased sales of farm equipment and engines.

         Overseas revenue increased by 14.3% from the same period in the prior year to ¥610.4 billion. In North America, the construction machinery (hereinafter, the "CE") market remained firm, supported by steady residential investment as well as public investment and private construction demand. As for tractors, while utility vehicles were in an adjustment phase due to overall economic conditions, the agricultural market remained solid, supported by stable crop prices related to the livestock sector. In Europe, the tractor market remained broadly in line with the previous year, mainly supported by the small- and mid-sized segments despite continued pressure from agricultural product prices. Demand for CE continued to recover, driven by the materialization of country-specific policies. In Thailand, sales decreased as both the rice and dryland crop markets contracted, reflecting lower crop prices and higher fuel and fertilizer costs. In India, sales increased, driven by government rural support measures and favorable crop growing conditions.

         Operating profit in this segment increased by 45.0% from the same period in the prior year to ¥79.7 billion mainly due to higher sales volumes and price revisions in North America, as well as favorable exchange rate, despite negative factors such as cost increases related to U.S. tariffs and higher expenses.

      2. Water & Environment

         Kubota Corporation and Its Subsidiaries

         Water & Environment is composed of pipe system business (ductile iron pipes, plastic pipes, and other products), industrial products business (reformer and cracking tubes, spiral-welded steel pipes, air-conditioning equipment, and other products), and environment business (environmental control plants, pumps, and other products).

         Revenue in this segment increased by 6.5% from the same period in the prior year to ¥105.2 billion, which accounted for 13.0% of consolidated revenue.

         Domestic revenue increased by 6.1% from the same period in the prior year to ¥90.0 billion due to increased sales in each business.

         Overseas revenue increased by 9.4% from the same period in the prior year to ¥15.2 billion due to increased sales in environment business.

         Operating profit in this segment increased by 6.9% from the same period in the prior year to ¥14.3 billion due to higher sales and declines in raw material prices.

      3. Other

      Other is mainly composed of a variety of other services.

      Revenue in this segment increased by 2.2% from the same period in the prior year to ¥4.0 billion and accounted for 0.5% of consolidated revenue.

      Operating profit in this segment decreased by 81.8% from the same period in the prior year to ¥0.1 billion.

   2. Financial position

      1. Assets, liabilities, and equity

         Total assets as of March 31, 2026, were ¥6,265.2 billion, an increase of ¥60.3 billion from the prior fiscal year-end.

         With respect to assets, trade receivables increased mainly in the North America business.

         Total liabilities decreased from the prior fiscal year-end mainly due to a decrease in financial liabilities. Equity increased due to the accumulation of retained earnings and an improvement in other components of equity along with fluctuations mainly in foreign exchange rates.

         The ratio of equity attributable to owners of the parent to total assets stood at 42.9%, 0.6 percentage points higher than the prior fiscal year-end.

      2. Cash flows

         Net cash provided in operating activities during the three months ended March 31, 2026, was ¥14.7 billion, a decrease of ¥8.1 billion in net cash inflow compared with the same period in the prior year. This decrease resulted mainly from an increase in working capital, despite higher profit for the period.

         Net cash used in investing activities was ¥27.5 billion, a decrease of ¥22.9 billion in net cash outflow compared with the same period in the prior year. This resulted mainly from a decrease in expenditure related to acquisition of property, plant, and equipment.

         Net cash used by financing activities was ¥31.4 billion, a decrease of ¥16.8 billion in net cash outflow compared with the same period in the prior year mostly due to a decrease in repayments of bonds and borrowings.

         As a result of the above and after taking into account the effects of exchange rate changes, cash and cash equivalents as of March 31, 2026, were ¥238.4 billion, a decrease of ¥38.6 billion from the beginning of the current period.

   3. Forecasts for the year ending December 31, 2026

      The forecasts of the results of operations for the year ending December 31, 2026, which were announced on February 12, 2026, remain unchanged. Potential impacts on demand and costs arising from geopolitical risks and changes in tariff policies may affect our result but they are fluid at this stage.

      These forecasts are based on the assumption of exchange rates of ¥145=US$1 and ¥165=€1.

2. Other information
   1. Changes in significant subsidiaries

      None

   2. Changes in accounting policies

      None

3. Condensed consolidated financial statements

   1. Condensed consolidated statement of financial position

      ASSETS (Unit: millions of yen)

      	Mar. 31, 2026		Dec. 31, 2025		Change
      	Amount	%	Amount	%	Amount
      Current assets: Cash and cash equivalents Trade receivables Finance receivables Other financial assets Contract assets Inventories Income taxes receivable Other current assets Total current assets Noncurrent assets: Investments accounted for using the equity method Finance receivables Other financial assets Property, plant, and equipment Goodwill Intangible assets Deferred tax assets Other noncurrent assets Total noncurrent assets	¥ 238,395		¥ 276,959		¥ (38,564)
      	1,094,355		1,001,683		92,672
      	634,766		645,082		(10,316)
      	151,429		159,598		(8,169)
      	32,707		52,537		(19,830)
      	745,149		688,893		56,256
      	18,598		22,667		(4,069)
      	83,664		75,762		7,902
      	2,999,063	47.9	2,923,181	47.1	75,882
      	55,542		54,653		889
      	1,561,027		1,576,174		(15,147)
      	190,159		181,982		8,177
      	927,463		940,382		(12,919)
      	136,927		139,868		(2,941)
      	207,738		208,076		(338)
      	113,906		109,138		4,768
      	73,341		71,455		1,886
      	3,266,103	52.1	3,281,728	52.9	(15,625)
      Total assets	¥ 6,265,166	100.0	¥ 6,204,909	100.0	¥ 60,257

      LIABILITIES AND EQUITY (Unit: millions of yen)

      	Mar. 31, 2026		Dec. 31, 2025		Change
      	Amount	%	Amount	%	Amount
      Current liabilities:		28.1 25.1 53.2 42.9 3.9 46.8		28.5 25.2 53.7 42.3 4.0 46.3
      Bonds and borrowings	¥ 873,159		¥ 860,439		¥ 12,720
      Trade payables	282,378		296,375		(13,997)
      Other financial liabilities	92,235		109,945		(17,710)
      Insurance contract liabilities	61,965		62,143		(178)
      Income taxes payable	30,346		31,554		(1,208)
      Provisions	82,680		83,133		(453)
      Contract liabilities	48,217		46,070		2,147
      Other current liabilities	288,312		281,269		7,043
      Total current liabilities	1,759,292		1,770,928		(11,636)
      Noncurrent liabilities:
      Bonds and borrowings	1,404,760		1,381,640		23,120
      Other financial liabilities	59,501		68,961		(9,460)
      Retirement benefit liabilities	44,470		44,031		439
      Deferred tax liabilities	56,132		58,191		(2,059)
      Other noncurrent liabilities	8,019		8,134		(115)
      Total noncurrent liabilities	1,572,882		1,560,957		11,925
      Total liabilities	3,332,174		3,331,885		289
      Equity:
      Share capital	84,130		84,130		-
      Share premium	98,940		97,036		1,904
      Retained earnings	2,002,001		1,955,883		46,118
      Other components of equity	505,412		488,865		16,547
      Treasury shares	(3,248)		(2,929)		(319)
      Total equity attributable to owners of the parent	2,687,235		2,622,985		64,250
      Noncontrolling interests	245,757		250,039		(4,282)
      Total equity	2,932,992		2,873,024		59,968
      Total liabilities and equity	¥ 6,265,166	100.0	¥ 6,204,909	100.0	¥ 60,257

   2. Condensed consolidated statement of profit or loss

      (Unit: millions of yen, except earnings per share)

      	Three months ended Mar. 31, 2026		Three months ended Mar. 31, 2025		Change
      	Amount	%	Amount	%	Amount	%
      Revenue	¥ 810,012	100.0	¥ 712,556	100.0	¥ 97,456	13.7
      Cost of sales	(553,797)		(495,112)		(58,685)
      Selling, general, and administrative expenses	(156,793)		(145,366)		(11,427)
      Other income	4,604		6,931		(2,327)
      Other expenses	(5,984)		(17,394)		11,410
      Operating profit	98,042	12.1	61,615	8.6	36,427	59.1
      Finance income	7,066		5,687		1,379
      Finance costs	(2,330)		(4,183)		1,853
      Profit before income taxes	102,778	12.7	63,119	8.9	39,659	62.8
      Income tax expenses	(24,594)		(14,891)		(9,703)
      Share of profits (losses) of investments accounted for using the equity method	958		(122)		1,080
      Profit for the period	¥ 79,142	9.8	¥ 48,106	6.8	¥ 31,036	64.5

      Profit attributable to:
      Owners of the parent	¥	73,285	9.0	¥	41,346	5.8	¥	31,939	77.2
      Noncontrolling interests		5,857	0.8		6,760	1.0		(903)	(13.4)

      Earnings per share attributable to owners of the parent: Basic Diluted

      ¥ 64.45 -

      ¥ 35.97 -

   3. Condensed consolidated statement of comprehensive income

      (Unit: millions of yen)

      	Three months ended Mar. 31, 2026		Three months ended Mar. 31, 2025		Change
      Profit for the period Other comprehensive income, net of income tax: Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit pension plans Net change in fair value of financial assets measured at fair value through other comprehensive income Items that may be reclassified subsequently to profit or loss: Exchange rate differences on translating foreign operations Total other comprehensive income, net of income tax Comprehensive income for the period	¥	79,142	¥	48,106	¥	31,036
      	121		181		(60)
      	3,473		(1,333)		4,806
      	9,124		(102,423)		111,547
      	12,718		(103,575)		116,293
      	¥	91,860	¥	(55,469)	¥	147,329

      Comprehensive income attributable to:
      Owners of the parent	¥	91,100	¥	(49,743)	¥	140,843
      Noncontrolling interests		760		(5,726)		6,486

   4. Condensed consolidated statement of changes in equity

      Three months ended Mar. 31, 2026 (Unit: millions of yen)

      		Equity attributable to owners of the parent						Noncontrolling interests	Total equity
      		Share capital	Share premium	Retained earnings	Other components of equity	Treasury shares	Total equity attributable to owners of the parent
      Balance as of Jan. 1, 2026		¥ 84,130	¥ 97,036	¥ 1,955,883	¥ 488,865	¥ (2,929)	¥ 2,622,985	¥ 250,039	¥ 2,873,024
      Profit for the period				73,285			73,285	5,857	79,142
      Total other comprehensive income, net of income tax					17,815		17,815	(5,097)	12,718
      	Comprehensive income for the period			73,285	17,815		91,100	760	91,860
      	Transfer to retained earnings			1,268	(1,268)		-		-
      	Dividends paid			(28,435)			(28,435)	(1,614)	(30,049)
      	Purchases and sales of treasury shares		318			(319)	(1)		(1)
      	Share-based payment transactions		46				46		46
      	Changes arising from loss of control of subsidiaries						-	(1,888)	(1,888)
      	Changes in ownership interests in subsidiaries		1,540				1,540	(1,540)	-
      Balance as of Mar. 31, 2026		¥ 84,130	¥ 98,940	¥ 2,002,001	¥ 505,412	¥ (3,248)	¥ 2,687,235	¥ 245,757	¥ 2,932,992

      Three months ended Mar. 31, 2025 (Unit: millions of yen)

      		Equity attributable to owners of the parent						Noncontrolling interests	Total equity
      		Share capital	Share premium	Retained earnings	Other components of equity	Treasury shares	Total equity attributable to owners of the parent
      Balance as of Jan. 1, 2025		¥ 84,130	¥ 96,646	¥ 1,832,348	¥ 466,937	¥ (2,747)	¥ 2,477,314	¥ 262,452	¥ 2,739,766
      Profit for the period				41,346			41,346	6,760	48,106
      Total other comprehensive income, net of income tax					(91,089)		(91,089)	(12,486)	(103,575)
      	Comprehensive income for the period			41,346	(91,089)		(49,743)	(5,726)	(55,469)
      	Transfer to retained earnings			200	(200)		-		-
      	Dividends paid			(28,744)			(28,744)	(1,859)	(30,603)
      	Purchases and sales of treasury shares					(1)	(1)		(1)
      	Share-based payment transactions		196				196		196
      	Changes in ownership interests in subsidiaries		276		16		292	(337)	(45)
      Balance as of Mar. 31, 2025		¥ 84,130	¥ 97,118	¥ 1,845,150	¥ 375,664	¥ (2,748)	¥ 2,399,314	¥ 254,530	¥ 2,653,844

   5. Condensed consolidated statement of cash flows

      (Unit: millions of yen)

      	Three months ended Mar. 31, 2026		Three months ended Mar. 31, 2025		Change
      Cash flows from operating activities:
      Profit for the period	¥	79,142	¥	48,106
      Depreciation and amortization		35,605		31,275
      Loss (gain) from disposal of property, plant, and equipment and intangible assets, net		387		(832)
      Finance income and costs		(3,144)		(2,543)
      Income tax expenses		24,594		14,891
      Share of (profits) losses of investments accounted for using the equity method		(958)		122
      Increase in trade receivables		(87,219)		(85,358)
      Decrease in finance receivables		45,974		50,251
      Increase in inventories		(50,978)		(16,550)
      Decrease in other assets		6,565		11,626
      Decrease in trade payables		(14,035)		(7,640)
      Increase (decrease) in other liabilities		1,211		(11,755)
      Net changes in retirement benefit assets and liabilities		(608)		274
      Other, net		1,591		2,542
      Interest received		4,391		3,166
      Dividends received		140		2,008
      Interest paid		(765)		(97)
      Income taxes paid, net		(27,145)		(16,643)
      Net cash provided by operating activities	14,748		22,843		¥	(8,095)
      Cash flows from investing activities:
      Payments for acquisition of property, plant, and equipment	(27,187)		(45,405)
      Payments for acquisition of intangible assets	(7,073)		(5,573)
      Proceeds from sales of property, plant, and equipment	491		3,501
      Payments for acquisition of securities	(914)		(1,570)
      Proceeds from sales and redemptions of securities	106		-
      Proceeds from sales of businesses	6,339		-
      Proceeds from sales of subsidiaries	1,041		-
      Payments for loans receivable to associates	(600)		(1,950)
      Collection of loans receivable from associates	358		1,490
      Payments for time deposits	(3,853)		(6,534)
      Proceeds from withdrawal of time deposits	3,513		5,416
      Net decrease (increase) in restricted cash	217		(565)
      Proceeds from sales and redemptions of short-term investments	538		1,039
      Other, net	(435)		(200)
      Net cash used in investing activities	(27,459)		(50,351)		22,892
      Cash flows from financing activities:
      Funding from bonds and long-term borrowings	164,054		158,828
      Redemptions of bonds and repayments of long-term borrowings	(144,369)		(156,587)
      Net decrease in short-term borrowings	(7,667)		(15,186)
      Repayments of lease liabilities	(6,891)		(5,360)
      Net decrease in deposits from Group financing (within three months)	(679)		(29)
      Deposits from Group financing received (over three months)	10,423		10,399
      Repayments of deposits from Group financing (over three months)	(12,503)		(9,655)
      Dividends paid	(28,435)		(28,744)
      Dividends paid to noncontrolling interests	(1,614)		(1,859)
      Purchases of treasury shares	(769)		(1)
      Payments for acquisition of interests in subsidiaries from noncontrolling interests	(2,916)		-
      Net cash used in financing activities	(31,366)		(48,194)		16,828
      Effect of exchange rate changes on cash and cash equivalents	5,513		(9,258)		14,771
      Net decrease in cash and cash equivalents	(38,564)		(84,960)
      Cash and cash equivalents, at the beginning of the period	276,959		295,130
      Cash and cash equivalents, at the end of the period	¥	238,395	¥	210,170	¥	28,225

   6. Significant matters serving as the basis for condensed consolidated financial statements preparation

      The quarterly condensed consolidated financial statements were prepared in accordance with Article 5, Paragraph 2 of the Standards

      for the Preparation of Quarterly Financial Statements, etc. of Tokyo Stock Exchange, Inc. However, a part of the disclosures required under IAS 34, "Interim Financial Reporting" is omitted under Article 5, Paragraph 5 of the said preparation standards.

   7. Notes to the going concern assumption

      None

   8. Consolidated segment information

      1. Reportable segments

         Information by reportable segment is summarized as follows:

         (Unit: millions of yen)

         Three months ended Mar. 31, 2026		Farm & Industrial Machinery	Water & Environment	Other	Adjustments	Consolidated
         Revenue	External customers Intersegment	¥ 700,817 76	¥ 105,163 3	¥ 4,032 7,607	¥ － (7,686)	¥ 810,012 -
         Total		700,893	105,166	11,639	(7,686)	810,012
         Operating profit		¥ 79,680	¥ 14,277	¥ 73	¥ 4,012	¥ 98,042

         (Unit: millions of yen)

         Three months ended Mar. 31, 2025		Farm & Industrial Machinery	Water & Environment	Other	Adjustments	Consolidated
         Revenue	External customers Intersegment	¥ 609,884 61	¥ 98,727 2	¥ 3,945 7,017	¥ － (7,080)	¥ 712,556 -
         Total		609,945	98,729	10,962	(7,080)	712,556
         Operating profit		¥ 54,962	¥ 13,352	¥ 401	¥ (7,100)	¥ 61,615

         Notes:

         1. Adjustments include the items, such as the elimination of intersegment transfers and corporate expenses which are not allocated to any particular reportable segment. The corporate expenses included in Adjustments consist mainly of foreign exchange gains or losses incurred in Kubota Corporation.

         2. The aggregated amounts of operating profit are equal to those presented in the condensed consolidated statement of profit or loss. Please refer to the condensed consolidated statement of profit or loss for the reconciliation of operating profit to profit before income taxes.

         3. Intersegment transfers are recorded at values that approximate market prices.

         4. Beginning with this period, corporate expenses that were formerly included in the "Adjustments" have been allocated to each reportable segment based on a change in the internal management reporting. To reflect this change in presentation, the comparative information has been retrospectively adjusted.

      2. Geographic information

         Information about revenue from external customers by location is summarized as follows:

         (Unit: millions of yen)

         	Three months ended Mar. 31, 2026		Three months ended Mar. 31, 2025
         Japan	¥	184,403	¥	164,702
         North America		327,019		268,281
         Europe		102,344		81,260
         Asia outside Japan		170,274		178,579
         Other areas		25,972		19,734
         Total	¥	810,012	¥	712,556

         Notes:

         1. The revenue from North America included that from the United States of ¥293,399 million and ¥243,298 million for the three months ended March 31, 2026 and 2025, respectively.

         2. There was no specific customer that exceeded 10% of total consolidated revenue of the Company.

   9. Consolidated revenue by product group

(Unit: millions of yen)

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